“We are now conducting research on the port and its viability,” he said, indicating that authorities are still assessing the potential benefits of the project.
The Oluvil Port was initially developed to serve the eastern region of Sri Lanka under the Nagenahira Navodaya Programme, which aimed to revive the Eastern Province after the war.
Sri Lanka has five seaports, including Trincomalee and Oluvil, both located on the eastern coastline and strategically positioned to enhance regional maritime connectivity.
Successive governments have emphasized turning Sri Lanka into a maritime hub, capitalizing on its location near key markets like India, but actual progress has been inconsistent.
The Oluvil Port project remains an example of an underutilised foreign-funded venture, reflecting poor long-term planning and mismanagement by past administrations.
Foreign diplomats have criticized Sri Lanka’s leadership for failing to create a stable and investor-friendly climate, thereby undermining the potential of projects like Colombo Port City, the Lotus Tower, and Mattala Airport.
Although launched in 2014, the Colombo Port City has yet to reach its full potential, despite offering 100% foreign ownership, strong infrastructure, and regulatory incentives.
Regulatory delays, bureaucratic hurdles, and a lack of strategic marketing have diverted potential investors from Sri Lanka to more promising regional destinations.
India has pledged a US $62 million grant to develop the Kankesanthurai Port, but the Sri Lankan government has yet to make a final decision, with a feasibility study currently underway.
If managed wisely, Sri Lanka’s port infrastructure could significantly contribute to economic growth, but this requires consistent policies, reduced political interference, and effective use of foreign assistance.
